China Co-Financing Fund for Latin America and the Caribbean loan provides $50 million loan to Bancóldex for on-lending to small- and medium-sized enterprises (Linked to Project ID#86526)

On September 18, 2020, the China Co-Financing Fund for Latin America and the Caribbean signed a $50 million loan agreement with Banco de Comercio Exterior de Colombia S.A. (Bancóldex) — a state-owned commercial bank that operates as Colombia's entrepreneurial development and export-import bank — for on-lending to small- and medium-sized enterprises. The borrowing terms of the loan are unknown. However, it is known that the borrower was expected to use the loan proceeds to support the ‘Colombia Responde para Todos’ program, which provided liquidity to small- and medium-sized enterprises facing cash flow pressures due to lockdowns and economic activity paralysis resulting from the COVID-19 global pandemic. The loan from the China Co-Financing Fund for Latin America and the Caribbean was secured alongside two additional loans: a $100 million loan from the Inter-American Investment Corporation (IDB Invest) and a $20 million loan from Development Finance Institute Canada (FinDev Canada).

Additional details

1. The China Co-Financing Fund for Latin America and the Caribbean was established on January 14, 2013 with a contribution of $2 billion by the People's Bank of China. It is administered by the IDB. For more information, see umbrella Project ID#86526. 2. The IDB Invest project identification number is 13100-01 or IDBI-13100-01.

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